Spending on eating out rises but transaction spend falls

Consumers are spending more on takeaway services ‒ including Deliveroo and Hello Fresh ‒ and eating out more frequently overall, although average transaction value has fallen across casual dining and pubs, according to a new report.

Figures from spending insight analysts Cardlytics – which considered the spending behaviour of six million bank customers ‒ showed that spending in the delivery sector had increased 13.5 per cent over the summer months (9 July-27 August) compared to the same period last year.

The figures also showed that the majority of consumer spend in July and August 2016 was across casual dining and pub brands, but home delivery and quick service restaurants outpaced this growth, at 23 per cent and 18 per cent respectively.

Home delivery was the strongest category, seeing growth across both overall spend and average transaction value.

In contrast, although consumers are eating out more, average spend per visit fell by 5.2 per cent, and average transaction value in pubs fell by 7.2 per cent and in casual restaurants by 6.9 per cent.

However, grab-and-go brands offering classics including burgers, fish and chips and sushi thrived over the summer, including Japanese-style group Wasabi, fish and chips favourite Harry Ramsdens, and American burger group Five Guys.

The report suggested that brands could use the data to encourage investment in building loyalty among customers, and to consider the new dynamic between customers, restaurants, and changing at-home dining habits.

Duncan Smith, ‎head of business development at Cardlytics UK, said: “Our comprehensive data shows that despite the economic uncertainty, the restaurant sector had an excellent summer. Consumer appetite for spending on eating out remains healthy but brands will have to continue to work hard as competition for discretionary spend is likely to build towards the end of the year.

“The move towards new home delivery services is interesting because it has the potential to fundamentally change the relationship between restaurants and their customers. Brands will have to consider this new dynamic, particularly as they seek to build loyalty among their diners.”